Contractor/ Investor partner up
Hello
I am a contractor who does 10-12 remodel flips a year with two different investors in the Milwaukee, Wi area and I have an opportunity in doing work for a new investor. In doing business with the two original investors I provide scope of work and a contract is signed, its a well oiled machine thus far:) But with the new investor it'll be a little different....
I GC the entire flip and get my draws for labor/ materials accordingly. The investor will have no time to take part in any of the remodel and minimal time in marketing the completed homes, although he has used used an agent in the past to find and sell properties. Essentially, I provide market ready homes and and he provides the cash needed.
I will still provide scope of work and etc. but I will also be GCing the entire project.
What is the appropriate way of doing business with him?
Should there be talks of commissions made per sold homes?
Should I set up a split of profits agreement?
What are my avenues? Etc....
There is a great opportunity here for me and my business of being the contractor, and I also see this as my way in to becoming my own Investor! :)
Thanks for reading this and look forward to reading the responses!